Overall AVTR gets a fundamental rating of 4 out of 10. We evaluated AVTR against 58 industry peers in the Life Sciences Tools & Services industry. While AVTR is still in line with the averages on profitability rating, there are concerns on its financial health. AVTR is valued quite cheap, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

AVTR had positive earnings in the past year.
AVTR had a positive operating cash flow in the past year.
AVTR had positive earnings in each of the past 5 years.
AVTR had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of AVTR (-0.70%) is better than 62.07% of its industry peers.
The Return On Equity of AVTR (-1.48%) is better than 62.07% of its industry peers.
AVTR's Return On Invested Capital of 4.80% is fine compared to the rest of the industry. AVTR outperforms 70.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVTR is significantly below the industry average of 13.29%.

		Industry Rank	Sector Rank
ROA	-0.7%
ROE	-1.48%
ROIC	4.8%

ROA(3y)4.42%

ROA(5y)3.49%

ROE(3y)10.57%

ROE(5y)9.15%

ROIC(3y)6.58%

ROIC(5y)6.55%

1.3 Margins

In the last couple of years the Profit Margin of AVTR has grown nicely.
AVTR has a Operating Margin of 9.18%. This is in the better half of the industry: AVTR outperforms 67.24% of its industry peers.
In the last couple of years the Operating Margin of AVTR has grown nicely.
AVTR has a Gross Margin of 33.13%. This is in the lower half of the industry: AVTR underperforms 67.24% of its industry peers.
In the last couple of years the Gross Margin of AVTR has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	9.18%
PM (TTM)	N/A
GM	33.13%

OM growth 3Y-7.05%

OM growth 5Y2.19%

PM growth 3Y15.1%

PM growth 5YN/A

GM growth 3Y-0.28%

GM growth 5Y1.11%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVTR is destroying value.
The number of shares outstanding for AVTR has been increased compared to 1 year ago.
Compared to 5 years ago, AVTR has more shares outstanding
AVTR has a better debt/assets ratio than last year.

2.2 Solvency

AVTR has an Altman-Z score of 1.74. This is a bad value and indicates that AVTR is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.74, AVTR perfoms like the industry average, outperforming 43.10% of the companies in the same industry.
The Debt to FCF ratio of AVTR is 7.37, which is on the high side as it means it would take AVTR, 7.37 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.37, AVTR is doing good in the industry, outperforming 60.34% of the companies in the same industry.
AVTR has a Debt/Equity ratio of 0.65. This is a neutral value indicating AVTR is somewhat dependend on debt financing.
AVTR has a worse Debt to Equity ratio (0.65) than 74.14% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.65
Debt/FCF	7.37
Altman-Z	1.74

ROIC/WACC0.47

WACC10.31%

2.3 Liquidity

AVTR has a Current Ratio of 1.49. This is a normal value and indicates that AVTR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.49, AVTR is not doing good in the industry: 75.86% of the companies in the same industry are doing better.
AVTR has a Quick Ratio of 1.49. This is a bad value and indicates that AVTR is not financially healthy enough and could expect problems in meeting its short term obligations.
AVTR's Quick ratio of 0.96 is on the low side compared to the rest of the industry. AVTR is outperformed by 81.03% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.49
Quick Ratio	0.96

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

AVTR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.04%.
AVTR shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.82% yearly.
Looking at the last year, AVTR shows a decrease in Revenue. The Revenue has decreased by -3.59% in the last year.
The Revenue has been growing slightly by 2.35% on average over the past years.

EPS 1Y (TTM)-2.04%

EPS 3Y-10.82%

EPS 5YN/A

EPS Q2Q%-15.38%

Revenue 1Y (TTM)-3.59%

Revenue growth 3Y-2.8%

Revenue growth 5Y2.35%

Sales Q2Q%-5.28%

3.2 Future

AVTR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.40% yearly.
The Revenue is expected to grow by 1.67% on average over the next years.

EPS Next Y-8.21%

EPS Next 2Y-4.13%

EPS Next 3Y0.83%

EPS Next 5Y5.4%

Revenue Next Year-4.15%

Revenue Next 2Y-2.09%

Revenue Next 3Y-0.25%

Revenue Next 5Y1.67%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.26, the valuation of AVTR can be described as reasonable.
AVTR's Price/Earnings ratio is rather cheap when compared to the industry. AVTR is cheaper than 98.28% of the companies in the same industry.
AVTR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
A Price/Forward Earnings ratio of 11.76 indicates a reasonable valuation of AVTR.
AVTR's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVTR is cheaper than 98.28% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, AVTR is valued rather cheaply.

		Industry Rank	Sector Rank
PE	11.26
Fwd PE	11.76

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AVTR is valued cheaper than 98.28% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVTR indicates a rather cheap valuation: AVTR is cheaper than 96.55% of the companies listed in the same industry.